Stocks fell as tensions between the U.S. and China escalated after the Trump administration imposed new restrictions on Nvidia Corp.’s chip exports to China. The restrictions raised concerns about the worsening trade conflict between the two largest economies in the world.
Europe’s Stoxx 600 index declined, with ASML Holding NV dropping more than 7% due to weaker-than-expected orders in the chip sector. In U.S. markets, Nasdaq 100 futures fell 1.9%, and Nvidia’s stock dropped further in after-hours trading. Asian stocks, particularly Chinese technology shares, were also negatively impacted, with some sectors falling as much as 4.9%.
In contrast, gold prices surged to a new record high, crossing $3,297.89 per ounce, driven by demand for haven assets amid global uncertainty. The Swiss franc also extended its gains against the U.S. dollar as a result of the broader weakness in the greenback.
The market remains on edge, particularly regarding potential long-term effects of U.S.-China trade tensions and upcoming statements from U.S. Federal Reserve Chair Jerome Powell on the economy.
Other key market movements included declines in major stock indices, a drop in Treasury yields, and a decrease in Brent crude oil prices.
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